Rents in the North have risen more than anywhere else in the UK, bringing cheer to buy-to-let investors, according to a survey.

Rents in the North have risen more than anywhere else in the UK, bringing cheer to buy-to-let investors, according to a survey. The rental sector is being strengthened by priced out first-time buyers and homeowners choosing to sell-up and rent in the hope of making a profit, according to the Royal Institution of Chartered Surveyors' latest lettings survey.

Fiona Bell, a partner at Bellwood Associates, said she has noticed this trend.

"Homeowners can't believe the terrific prices their homes are achieving," she said. "Some are selling up to cash in on the booming market and choosing to rent for two to three years and take their chances on prices falling.

"We've also noticed a lot of elderly people selling up and renting."

Miss Bell said that mid-range properties priced from &#xA3;500 to &#xA3;700 are most in demand along with four-bedroom detached properties in Jesmond and Gosforth.

"These larger executive homes are most in demand for corporate lets. We can't get enough of them - demand is far outstripping supply," she said.

However, she warns that investors should seek independent advice before buying new apartments. "The rent you may finally achieve when the apartments are built may be less than what selling agents are telling you is achievable," she added.

The RICS said that rents in the North-East rose by more than in the first quarter of the year, though they were outstripped by house price gains which pushed yields on rental properties down.

Modest rises in rents are anticipated in the July quarter too.

Mark Walton, director of Walton Robinson, urged those thinking of entering the buy-to-let market to seek advice on the best places to buy.

He said: "Tenants entering the lettings market are in an enviable position. There are a lot of good quality flats and houses available and due to this prices are very low.

"What you get for your money renting as opposed to buying has never been so good.

"We are experiencing exceptionally high demand for the rental properties we have on our books, however, and we predict that this will have an upwards effect on prices in the medium to long run."

Terry Kimmitt of Interlet Letting Agents in Consett, County Durham, added: "Property values are still rising in the area and investors are finding it difficult to acquire investment properties with attractive returns."

The RICS says demand for rental property is at its strongest for two years, keeping rents steady across most of Great Britain.

Over the past three months, 1pc of surveyors reported a drop in rents, compared with 9pc the previous quarter.

Rents rose in most regions across the country, with the exception of London and the South-East, according to the survey.

However, the highest rents were still to be found in London, where the average rent per calendar month was &#xA3;1,619, compared with &#xA3;464 in the North.

"Residential let properties are currently offering a return of about 5pc to investors which, after allowing for repair and maintenance costs and periods when a property may be left empty between lettings, gives a net yield of 2-2.5pc."

Overall, RICS members reported a modest rise in the number of properties being put on the market for rent, although instructions rose by less than a year ago when the buy-to-let boom was at its peak.

Surveyors remain positive in their forecast for rents over the coming quarter, with modest rises expected in most regions.